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CPF Medisave

Do You Terminate Your DPS And Eldershield Because Of The Premiums?

There is still a strong sign of Singaporeans terminating their Dependent Protection Scheme and Eldershield simply because of these reasons:

1. If I do not die, be permanently incapacitated before the age of 60 (for the case of DPS) or unable to commit to at least 3 out of the daily 6 activities (for the case of Eldershield), the total premiums paid by me are down the drain

2. I do not know what these plans are all about.

3. My CPF accounts (Ordinary and Medisave) will run out because of these plans if i continue to pay.

And when unforeseen circumstances do happen, some of the fingers are actually pointing to the insurance companies for not doing their best to ask the Policy Holders to keep the plan or that the plan was terminated without the Policy Holders’ acknowledgement (they do happen!)

Then there will be a tough time asking for the revival of the plans… asking for leniency and such…

The Premiums Paid Is Just A Small Price…

Let’s calculate the total premiums paid when you first get in (entry age is 16 if you do make your first CPF contribution) to age 60:

  • Age 16 – 34, $36 per year, a total of 19 x $36 = $684
  • Age 35 – 39, $48 per year, a total of 5 x $48 = $240
  • Age 40 – 44, $84 per year, a total of 5 x $84 = $420
  • Age 45 – 49,  $144 per year, a total of 5 x $144 = $720
  • Age 50 – 54, $228 per year, a total of 5 x $228 = $1140
  • Age 55- 60, $260 per year, a total of 5 x $260 = $1300

Making a total premiums paid of $4504 during a duration of 45 years, an average of $100 per year, $8.33 per month, $0.28 per day but covering you for a lump sum $46,000 (not including the bonuses). And should anything happen meanwhile, the return-fold is 46,000/100 = 460 times instantly.

How About ElderShield?

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2010 – A New Year To Start And Improve Your Financial Plans

Happy 2010!

Phew! 2009 has been a rough year for many and there are many valuable lessons that one can learn from and apply to in 2010.

And some of these which I personally feel that it’s worthy to keep in mind at all times:

  1. It’s wise to be more knowledgeable in what you are investing – nothing is safe till you know the risks involved.
  2. It’s always good to diversify – not just your investment portfolios. Big companies with many years of history may just go bust overnight so do not put all your nest eggs into just one basket. In other words, it’s okay to have the same type of insurance plan with other companies. You need it too!
  3. Not everybody will tell the truth – learn to listen and ask good questions and to put the feedbacks or answers down in writing (do verify after the writing)
  4. What “goes down in March” will “come up in August” – this is an investment lesson or experience that I have personally went through. A unit trust that went real down in March 2009 (also the time when many people choose to sell off) climbed back up in August 2009 (and it was higher than the normal times). So do not follow what other average people do, learn to differentiate and understands from within.
  5. Not all are down during the recession – many stock prices are down but not all and it’s evident in the property market (especially in Singapore) and in the prices of Gold (have you seen how it climb at the last few months of 2009). What this mean to all of us is that we need to understand how the financial market really work – relationship between various investment options like Equities, Commodities, Properties and Cash.
  6. Take good care of your health. 2009 is the year that many people are concerned about their financial health but they are unable to get the insurance that they need. Common illnesses: Hypertension, High Cholesterol and Diabetes!

So will the new year in place, have you set aside some of your resolutions to start and improve on your financial planning?

If not, how about getting some pointers and guidelines from this blog?

For Newborns And Children Starting School (Kindergarten or Primary School)

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